British luxury automaker Aston Martin said on Wednesday that it will cut up to 20% of its workforce as tariff and regulatory headwinds along with a challenging market backdrop weigh on the business.
The company said the cuts will result in an annualized savings of about 40 million pounds ($54 million), most of which will occur this year. The company employs about 3,000 workers.
Aston Martin didn’t specify when the cuts would occur this year, and they include the 5% workforce reduction the company announced last year.
The company also announced that it would trim its five-year capital spending plan to 1.7 billion pounds from 2 billion pounds by delaying investment in electric vehicle technology.
Aston Martin announced plans to cut up to 20% of its workforce in a cost-cutting push. (Chris Ratcliffe/Bloomberg via Getty Images)
Best known as the car brand driven by James Bond, the company has struggled to generate cash and manage its debt of 1.38 billion pounds.
Aston Martin has received injections of capital from Canadian billionaire and Chairman Lawrence Stroll and through deals.
Aston Martin said that tariffs have been particularly disruptive to the auto industry. (Martyn Lucy/Getty Images)
The company said U.S. tariffs had been “extremely disruptive” and demand had also been “extremely subdued” in China, the world’s biggest auto market.
Aston Martin said it expected further cash outflows in 2026, but also predicted “material improvement” in its financial performance.
It has a target for gross margins in the high 30% range and adjusted earnings before interest and taxes near breakeven, helped by around 500 deliveries of its new Valhalla hybrid supercar.
Aston Martin is working to improve its financial performance. (John Keeble/Getty Images)
The company made an operating loss of 259.2 million pounds in 2025.
As part of its efforts to improve its finances, it struck a 50-million-pound deal to sell the perpetual branding rights to its Formula One team last week.